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Q：
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What type of entity should I set up for a trading business in Malaysia?
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A：
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The most widely used business structure is a Private Limited Company (Sdn. Bhd.), which provides limited liability protection and is appropriate for both Malaysian and foreign investors. Foreigners can own 100% equity in most trading businesses unless the activity is restricted under specific sectoral guidelines.
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Q：
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Do I need a local director or shareholder to set up a trading company in Malaysia?
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A：
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At least one director must ordinarily reside in Malaysia (can be a Malaysian or a foreigner with a valid work/residency permit). No local shareholder is required. A trading company can be 100% foreign-owned, subject to obtaining necessary licenses like the WRT licence.
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Q：
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What is WRT license?
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A：
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WRT licence (Wholesale and Retail Trade license) is an official approval granted by Malaysia’s Ministry of Domestic Trade and Cost of Living (KPDN) for companies with foreign equity of 51% or more that intend to engage in in distributive trade activities.
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Q：
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How much capital is needed to start a trading company in Malaysia?
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A：
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By law, the minimum paid-up capital required is RM1. However, foreign-owned trading companies are generally expected to have at least RM1,000,000 in paid-up capital to qualify for a WRT license. Malaysian-owned companies may proceed with a lower capital amount.
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Q：
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Can a newly incorporated foreign-owned company apply for a WRT license immediately?
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A：
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No, the company must hold a valid business premise licence and ensure that a minimum paid-up capital of RM1,000,000 is registered.
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FAQ
